AHDB Cattle and Sheep Weekly

AHDB Cattle and Sheep Weekly - 21 September 2015

Cattle trade resumes its steady position

The cattle trade again demonstrated the fine balance between supply and demand.In week ended 12 September prices generally steadied on the week as numbers coming forward were up on the shorter bank-holiday week earlier. However, it is also possible that as harvest activities have tailed off, some producers have been more active in marketing cattle.

The GB prime cattle average price was up a fraction at 347.9p/kg. Steers meeting R4L classification moved up a penny on the week earlier, breaking the 360.0p/kg for the first time since the end of July at 360.5p/kg. Heifers of the same spec levelled at 358.1p/kg while R3 young bulls moved up a penny to average 340.1p/kg. The current stability in the market suggests that a small lift in demand could well stimulate some competition in the market as processors look to ensure their pipelines are adequately filled. In addition, the expectation that cattle coming off grass could be slower to finish than previously expected is likely to underpin farm gate prices as the autumn progresses.

Cull cow prices firmed for the second week in a row on the back of improved demand for manufacturing beef, despite a notable increase in the number of cows coming forward compared to last week. Well fleshed cows meeting -O4L specification moved up another 2p on the week to 237.0p/kg.